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NEWS
Xponential reveals three year forecasts, joins forces with Gympass and Gary Vee to drive growth
POSTED 07 Sep 2023 . BY Liz Terry
Anthony Geisler, CEO of Xponential Fitness Credit: Xponential Fitness
Xponential Fitness presented its three-year operating targets at its first Analyst and Investor Day at the New York Stock Exchange today.

Taking to the floor, CEO Anthony Geisler said Xponential is expecting to see 500 openings in the year 2026, along with North America system-wide sales of US$2.330 billion, revenue of US$405 million and Adjusted EBITDA of US$190 million.

Reverse engineering the numbers gives an insight into how scale will drive profits for the business as it grows, with system-wide sales looking likely to grow from the approx US$400k per site average that was achieved in 2022 to around US$500k per site in 2026. Xponential takes 9 per cent of these sales in addition to franchise and other fees.

A new deal with corporate wellbeing platform Gympass was also revealed by Geisler who said inventory from all ten of Xponential’s brands will be available on the Gympass app from October, giving franchisees an outlet for their spare class spaces, enabling them to attract new customers from the high-value corparate wellness sector and drive incremental revenue.

Gympass, which was recently valued at US$2.4 billion, has 15,000 corporate customers and 50,000 operator partners, including Life Time, Orangetherory and Barry’s, so Xponential is fairly late to the party with this deal.

The volume of brands and locations it brings will be material for Gympass.

The final announcement saw Geisler revealing that the company has hired a new marketing agency, mobile-first specialist VaynerMedia, which is run by Gary Vaynerchuk (Gary Vee) and works with brands such as TikTok and Tinder.

Vaynerchuk will lead marketing efforts personally, with each Xponential brand having its own content plan to ‘drive awareness, capture new audiences and optimise marketing spend’.

Vaynerchuk said he believes his agency will help Xponential to “reach new levels of growth globally.”

During the presentations, Geisler also confirmed that Xponential remains on track to hit the high-end of its forecast range of KPIs for 2023 – which were announced on 3 August.

These include:

- 540-560 studio openings – an 8 per cent increase on 2022
- Revenues between US$295 and US$305
- Adjusted EBITDA between US$102.5m and US$106.5m
- System wide sales of between US$1.385 and US$1.395 billion (the company broke the billon dollar barrier in March this year).

Share prices – that haven’t fully recovered from the Fuzzy Panda incident – dropped 15 per cent in spite of these solid results and forecasts, however, on the day that Xponential looks three years ahead, it’s worth noting that even with today’s drop, Xponential's share prices have increased 56 per cent over the last five years.

RELATED STORIES
  Gympass raises US$85m, hits US$2.4bn value and logs its 300 millionth check-in


Gympass, the aggregator which specialises in corporate wellbeing, has achieved a US$2.4bn valuation, up from US$2.2bn two years ago.
  Getting employees physically active 'cuts company healthcare costs by 35 per cent'


Companies which successfully encourage their employees to become more physically active could see their healthcare costs being cut by more than a third.
  Xponential posts Q2 2023 profit results – reveals growth strategies


Xponential Fitness, has released its global financial results for the year to date, with a confident performance across the board, although share earnings were slightly below analysts' expectations.
  Xponential Fitness enters France with signing of master franchise deal for Club Pilates


Xponential Fitness has signed a master franchise agreement in France for its Club Pilates brand.
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NEWS
Xponential reveals three year forecasts, joins forces with Gympass and Gary Vee to drive growth
POSTED 07 Sep 2023 . BY Liz Terry
Anthony Geisler, CEO of Xponential Fitness Credit: Xponential Fitness
Xponential Fitness presented its three-year operating targets at its first Analyst and Investor Day at the New York Stock Exchange today.

Taking to the floor, CEO Anthony Geisler said Xponential is expecting to see 500 openings in the year 2026, along with North America system-wide sales of US$2.330 billion, revenue of US$405 million and Adjusted EBITDA of US$190 million.

Reverse engineering the numbers gives an insight into how scale will drive profits for the business as it grows, with system-wide sales looking likely to grow from the approx US$400k per site average that was achieved in 2022 to around US$500k per site in 2026. Xponential takes 9 per cent of these sales in addition to franchise and other fees.

A new deal with corporate wellbeing platform Gympass was also revealed by Geisler who said inventory from all ten of Xponential’s brands will be available on the Gympass app from October, giving franchisees an outlet for their spare class spaces, enabling them to attract new customers from the high-value corparate wellness sector and drive incremental revenue.

Gympass, which was recently valued at US$2.4 billion, has 15,000 corporate customers and 50,000 operator partners, including Life Time, Orangetherory and Barry’s, so Xponential is fairly late to the party with this deal.

The volume of brands and locations it brings will be material for Gympass.

The final announcement saw Geisler revealing that the company has hired a new marketing agency, mobile-first specialist VaynerMedia, which is run by Gary Vaynerchuk (Gary Vee) and works with brands such as TikTok and Tinder.

Vaynerchuk will lead marketing efforts personally, with each Xponential brand having its own content plan to ‘drive awareness, capture new audiences and optimise marketing spend’.

Vaynerchuk said he believes his agency will help Xponential to “reach new levels of growth globally.”

During the presentations, Geisler also confirmed that Xponential remains on track to hit the high-end of its forecast range of KPIs for 2023 – which were announced on 3 August.

These include:

- 540-560 studio openings – an 8 per cent increase on 2022
- Revenues between US$295 and US$305
- Adjusted EBITDA between US$102.5m and US$106.5m
- System wide sales of between US$1.385 and US$1.395 billion (the company broke the billon dollar barrier in March this year).

Share prices – that haven’t fully recovered from the Fuzzy Panda incident – dropped 15 per cent in spite of these solid results and forecasts, however, on the day that Xponential looks three years ahead, it’s worth noting that even with today’s drop, Xponential's share prices have increased 56 per cent over the last five years.

RELATED STORIES
Gympass raises US$85m, hits US$2.4bn value and logs its 300 millionth check-in


Gympass, the aggregator which specialises in corporate wellbeing, has achieved a US$2.4bn valuation, up from US$2.2bn two years ago.
Getting employees physically active 'cuts company healthcare costs by 35 per cent'


Companies which successfully encourage their employees to become more physically active could see their healthcare costs being cut by more than a third.
Xponential posts Q2 2023 profit results – reveals growth strategies


Xponential Fitness, has released its global financial results for the year to date, with a confident performance across the board, although share earnings were slightly below analysts' expectations.
Xponential Fitness enters France with signing of master franchise deal for Club Pilates


Xponential Fitness has signed a master franchise agreement in France for its Club Pilates brand.
MORE NEWS
Google launches Gemini – its ChatGPT killer
Google has just released Gemini, a new AI which is being billed as a "ChatGPT Killer".
Mental health certification launches for fitness professionals
The world’s first certification for fitness professionals to support mental wellbeing will be launched early next year. Created by the John W Brick Mental Health Foundation, the Mental Well-Being certification for Fitness Professionals will provide the tools to create self-care programmes and environments to support mental wellbeing.
Bear Grylls launches meditation app for men
Survivalist, Bear Grylls has partnered with four mental health heavyweights and former TV producer, Neil Smith, to create an app targeted directly at men. Mettle is designed to promote sleep, help people manage stress and improve mental focus.
Workplace wellness – Health Foundation addresses growing crisis with creation of independent commission
An Independent Commission for Healthier Working Lives, supported by the Health Foundation, is being established to investigate the issue of declining health in the UK workforce and recommend action that can be taken by both the government and employers.
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SKILLCOURT's groundbreaking tech is now available in the UK
SKILLCOURT is an intelligent laser-based training and diagnostic tool to promote both motor and cognitive development in patients, athletes and children. [more...]

Speedflex strengthens client list with four new installs
Speedflex, the fitness concept known for delivering HIIT Without The Hurt, has announced a number of new clients. [more...]
+ More featured suppliers  
COMPANY PROFILES
Perfect Gym Solutions S.A.

Perfect Gym is a global software provider specialising in fitness and recreation facility management [more...]
+ More profiles  
CATALOGUE GALLERY
+ More catalogues  

DIRECTORY
+ More directory  
DIARY

 

08-11 Jan 2024

Hot Springs Connection Conference

Murrieta Hot Springs, United States
25-28 Jan 2024

Les Thermalies, the water & well-being exhibition

Carrousel du Louvre, Paris, France
+ More diary  
 


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